SHANGHAI, – China stocks rose to their highest level since 2015 on Wednesday, extending a rally fuelled by a rotation of funds into equities amid easing trade tensions and Beijing’s crackdown on excessive competition.
** China’s blue-chip CSI300 Index closed up 1.1%, while the Shanghai Composite Index rose 1%. Hong Kong benchmark Hang Seng was up 0.2%.
** The Shanghai Composite Index rallied to 3,766 points, the highest level since August 2015.
** More than 200 mutual funds have been established since July, of which over 70% are equity-focused, the official Shanghai Securities News reported on Wednesday. These newly set up equity funds have raised 67.7 billion yuan, providing fresh fuel for the bull run.
** Investors were also encouraged by fresh government moves to curb price wars and industrial overcapacity.
** China’s industry ministry said it held a meeting with solar industry representatives, the second in two months, urging the sector to strengthen regulations and reduce extreme competition among firms.
** UBS analysts said in a note that China’s equity markets had extended gains in August despite a string of disappointing macroeconomic data and tepid policy support.
** The analysts said the A-share rally could continue, as retail participation typically rises after stronger market performance. “We still retain some defensive names given the overall lukewarm economy and our preferred exposures included major banks and telecoms,” they added.
** Total turnover of onshore shares exceeded 2.5 trillion yuan for the third consecutive day on Wednesday.
** Tech majors closed roughly flat, showing resilience despite overnight declines in the tech-heavy Nasdaq.
** Shares of innovative drug makers in Hong Kong and mainland China dropped nearly 1%, reversing some of the gains seen so far this month.
** China’s Pop Mart jumped nearly 12.5% to a record high after the company reported a surge in first-half profit.
This article was generated from an automated news agency feed without modifications to text.
